Pay Disparity – Internal Promotions vs Lateral Hiring – Asrar Qureshi’s Blog Post #1068
Pay Disparity – Internal Promotions vs Lateral Hiring – Asrar Qureshi’s Blog Post #1068 Dear Colleagues! This is Asrar Qureshi’s Blog Post #1068 for Pharma Veterans. Pharma Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to pharmaveterans2017@gmail.com for publishing your contributions here. Credit: Ivan Samkov Credit: Ketut Subiyanto Preamble This phenomenon—where long-term, loyal employees are often underpaid compared to external hires—is a well-documented issue in corporate compensation structures. Research consistently shows that external hires are often brought in at a premium of 15-20% over internally promoted employees, despite the latter having institutional knowledge, proven performance, and loyalty to the company. Why Does This Happen? First reason is that there is a disparity between market compensation and organization’s internal pay scale. Companies benchmark external hires’ salaries against the ...